Applied recognizes revenue when promised goods or services are transferred to a customer in an amount that reflects the consideration to which Applied expects to be entitled in exchange for those goods or services. Applied determines revenue recognition through the following five steps; (1) identification of the contract(s) with customers, (2) identification of the performance obligations in the contract, (3) determination of the transaction price, (4) allocation of the transaction price to the performance obligations in the contract, and (5) recognition of revenue when, or as, a performance obligation is satisfied.

Source: 10-K (filing date: 2019-12-13).

Applied Materials Inc., Income Statement, Revenues

US$ in millions

12 months ended:	Oct 27, 2019	Oct 28, 2018	Oct 29, 2017	Oct 30, 2016	Oct 25, 2015	Oct 26, 2014
Semiconductor Systems	9,027	10,903	9,517	6,873	6,135	5,978
Applied Global Services	3,854	3,754	3,017	2,589	2,447	2,114
Display and Adjacent Markets	1,651	2,498	1,900	1,206	944	848
Corporate and Other	76	98	103	157	133	132
Net sales	14,608	17,253	14,537	10,825	9,659	9,072

Based on: 10-K (filing date: 2019-12-13), 10-K (filing date: 2018-12-13), 10-K (filing date: 2017-12-15), 10-K (filing date: 2016-12-15), 10-K (filing date: 2015-12-09), 10-K (filing date: 2014-12-17).

Item	Description	The company
Net sales	Amount of revenue recognized from goods sold, services rendered, insurance premiums, or other activities that constitute an earning process. Includes, but is not limited to, investment and interest income before deduction of interest expense when recognized as a component of revenue, and sales and trading gain (loss).	Applied Materials Inc.’s net sales increased from 2017 to 2018 but then slightly decreased from 2018 to 2019 not reaching 2017 level.

Applied Materials Inc. (NASDAQ:AMAT)

Analysis of Revenues

Accounting Policy on Revenue Recognition

Revenues as Reported